Does Engel's law (as income increases, the % of income spent on food decreases) hold true...

Does Engel's law (as income increases, the % of income spent on food decreases) hold true for the poor? Why or why not?

Expert Solution

Rahul Sunny answered 2 years ago

when the law of increasing cost , the demand decreases and supply increases ? for example...

when the law of increasing cost , the demand decreases and supply increases ? for example , shortage of santizer ? so, the price increases ? can you help explains ?

1. (TRUE or FALSE?) Compound interest decreases as the number of years increases. 2. (TRUE or...

1. (TRUE or FALSE?) Compound interest decreases as the number of years increases. 2. (TRUE or FALSE?) The process of converting the initial amount into a future value is called discounting. 3. (TRUE or FALSE?) The future value is simply the current value of a future cash flow that has been discounted at the appropriate discount rate.

If income increases by 12 percent and the quantity demanded of a good then decreases by...

If income increases by 12 percent and the quantity demanded of a good then decreases by 6 percent, the good is: A) inferior and income-inelastic. B) inferior and income-elastic. C) normal and income-inelastic. D) normal and income-elastic.

For lump sum payment, an increase of interest rate increases FV and decreases PV. True or...

For lump sum payment, an increase of interest rate increases FV and decreases PV. True or false?

Insulin decreases blood sugar while glucagon increases blood sugar. True or False

Indicate whether the indicated condition increases, decreases or does not affect the probability of a loan...

Indicate whether the indicated condition increases, decreases or does not affect the probability of a loan default? a. smaller downpayment: b. negative amortization: c. lower interest rates: d. initial rate discount: e. charging a discount point:

Complete the following sentence. If, as Paula's income increases, her demand for hot dogs decreases, then...

Complete the following sentence. If, as Paula's income increases, her demand for hot dogs decreases, then for Paula, hot dogs are _______. A. a substitute B. a complement C. an inferior good D. a normal good

Assume income increases/decreases. Graph the outcomes in the following cases: A. X is normal, Y is...

Assume income increases/decreases. Graph the outcomes in the following cases: A. X is normal, Y is normal. B. X is inferior, Y is normal. C. X is normal, Y is inferior. D. Prove that X and Y cannot both be inferior. Assuming income increases, which axiom would be violated?

If Linda's income decreases by 15% and her expenditure on DVDs increases by 10%, Linda's price...

If Linda's income decreases by 15% and her expenditure on DVDs increases by 10%, Linda's price elasticity of demand for DVDs is: A. inelastic B. positive C. cannot be determined from the information given D. unit elastic E. highly responsive Pl explain why the selected answer is correct and also explain in one-two line why other answers are incorrect.

1) Depreciation for a profitable firm A: decreases both operating and net income. B: increases the...

1) Depreciation for a profitable firm A: decreases both operating and net income. B: increases the net fixed assets as shown on the balance sheet. C: reduces both the net fixed assets and the costs of a firm. D: is a non-cash expense which increases the net operating income. E: decreases net fixed assets, net income, and operating cash flows. 2) For a growing firm, the change in net working capital is generally: A: positive. B: negative. C: highly erratic....

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